Don't jump ship too early
One thing your lender may be looking out for is how long you’ve been working at your current job. Lenders can be hesitant to let you borrow money if you’ve only been in a role for a short time. Each lender will have different guidelines as to how long you should be employed in your current contract or have been working in the same industry to be eligible for a home loan. If you’re working casually, typically your hours should be regular and ongoing. It’s important to keep your job in mind when you decide to get a home loan so that you aren’t left waiting for your probation to tick over, even though you have enough saved.
A savings history helps
When applying for a home loan, it helps to show your lender that you can save. You might be thinking why is this necessary if I have enough money to pay for a deposit? If you can’t show your lender you can save, then this could highlight potential difficultly making your monthly loan repayments. Your lender may ask for recent bank statements when you apply so having a good account history before you apply might help.
There are additional costs
The largest component when saving for a home loan is usually the deposit, but often people forget the other costs. Don’t forget to factor in government fees (including stamp duty), home and contents insurance, and conveyancing costs into your final savings goal.
Cut the credit card…debt
A factor that some people get caught out on is having various credit cards or accounts with credit schemes like Afterpay and Zip Pay. If you miss a payment or have quite a bit owing, this may affect your overall credit score. Don’t stress, having a credit card for your bills or Afterpay for that occasional splurge on new shoes doesn’t mean you can’t buy a house. It just helps to keep your spending under control and pay everything off on time.
A budget can help you keep your spending on track. If you're starting to save for a property and you haven't properly looked at a budget you might not be saving as much as you could or you might be living off more than you need each week. Do you really need that UberEats after a late night on a Saturday or a new outfit for every occasion? Be honest with yourself on what you can and can’t afford.
Starting to make small changes to your spending now could put you in a much better position when you’re ready to apply. Better yet, by budgeting and monitoring your money you might be able to save more than you expected which means extra funds to pay for your favourite piece of furniture when you move in.